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131

ITA 2025 · Section 131

Housing Loan Interest 80EE

Chapter VIII — DeductionsITA 2025AY 2026-27 onward

Section 131 is the substantive equivalent of 1961 s. 80 EE. Alternative to s. 130 — for assessees NOT eligible for s. 130 , this section provides up to ₹ 50,000 additional deduction for first-home loan interest. Earlier sunset window…

Section 131 — HOUSING LOAN INTEREST (FIRST-HOME — 1961 s. 80EE SUCCESSOR)

Section 131 is the substantive equivalent of 1961 s. 80EE. Alternative to s. 130 — for assessees NOT eligible for s. 130, this section provides up to ₹ 50,000 additional deduction for first-home loan interest. Earlier sunset window (1-Apr-2016 to 31-Mar-2017 sanctions); subsequent purchases use s. 130. Available ONLY in OLD regime.

PLANNING NOTES

(i) Verify loan sanction date against eligibility window per Income-tax Rules, 2026. (ii) For NEW loans (post FA 2019), s. 130 (₹ 1.5 lakh) typically more attractive than s. 131 (₹ 50K) — choose accordingly. (iii) Cannot claim BOTH s. 130 and s. 131 — mutually exclusive.

CROSS-REFERENCES

  • Section 130 — Affordable housing (₹ 1.5 lakh).
  • Section 23 — HP-head interest cap.